Every first time buyer program on Long Island, with the catch on each
The down payment is the wall. Eighteen programs lower it: the state, the federal loan lanes, both counties, three towns, the Federal Home Loan Bank, two nonprofits and the big banks. Nobody hands you the list. Here it is, in the order you meet them, with the pros, the cons, and how many days ahead each one needs you.
On this page
- Start hereThe ninety day plan for a first time buyer
- Side by sideEvery program, the money, who, and the lead time
- The stateSONYMA, 3 percent down and up to $30,000 forgiven
- The federal loansFHA, conventional 3 percent, VA
- County and town money$30,000 in Suffolk, $50,000 in Nassau, Brookhaven, Babylon
- Nonprofit and bank moneyThe Homebuyer Dream grant, SmartMove, NACA, bank grants, the land trust and the stabilization program
- If you are the sellerWhat a program backed offer means for you
- How they stackAnd the plain math on a $550,000 house
Start here: the ninety day plan
Two working people with good credit and a small savings account, buying their first house on Long Island. This is the order that gets them every dollar on this page.
If your income sits over every line on this page, which two incomes on Long Island often do, the road is shorter: conventional 3 percent down or FHA, a bank grant if the address qualifies, and the Homebuyer Dream Plus lane up to 120 percent of the area median.
Every program, side by side
The money, who it is for, and how far ahead it needs you. The cards below carry the pros, the cons and the office.
| Program | The money | Who | Be ready |
|---|---|---|---|
| SONYMA Low Interest Rate Program with the Down Payment Assistance LoanState of New York | 3 percent of the price toward the down payment, $1,000 to $15,000, as a loan that is forgiven after ten years | First time buyers (no home owned in the last three years) inside SONYMA's income and price limits for Nassau and Suffolk. The 2026 table put a one or two person household near $112,000 of income; larger households run higher. Check the table for yours. | Pre approval in a week. SONYMA adds about two weeks of review to a normal 45 day closing, so plan on 60 days from contract to keys. |
| SONYMA Achieving the DreamState of New York | 3 percent down, and only 1 percent of it has to be your own money | First time buyers under SONYMA's lower income tier for Nassau and Suffolk; the 2026 table applies from July 6, 2026. | Same as the Low Interest Rate Program: a week for pre approval, about 60 days from contract to keys. |
| SONYMA DPAL Plus 2026State of New York | Up to $30,000 toward the down payment, closing costs and mortgage insurance, forgiven after ten years | First time buyers with household income at or below 60 percent of the area median, on a SONYMA mortgage, per the 2026 term sheet. | Ask the SONYMA lender the day you get pre approved whether the pool is still open; the money is reserved when your file is, not when you apply. |
| FHA loan, 3.5 percent downFederal loan programs, any lender | 3.5 percent down with a credit score of 580 or better; the 2026 limit in Nassau and Suffolk is $1,249,125 for a one family home | Anyone buying a primary home, first time or not. No income cap. | Pre approval in a day or two. A normal 30 to 45 day closing. |
| Conventional 3 percent down: HomeReady, Home Possible, Conventional 97Federal loan programs, any lender | 3 percent down; HomeReady and Home Possible want household income at or below 80 percent of the area median, Conventional 97 has no income cap for a first time buyer | First time buyers for Conventional 97; income at or below 80 percent of the area median for HomeReady and Home Possible. HUD's June 2025 table put 80 percent for a family of four in Nassau and Suffolk at $131,900. | Pre approval in a day or two. A normal 30 to 45 day closing. |
| VA loan, zero downFederal loan programs, any lender | No down payment and no monthly mortgage insurance; a funding fee of 2.15 percent of the loan on first use with nothing down, financed into the loan | Anyone with a VA Certificate of Eligibility, which the lender can pull in minutes. | Certificate of Eligibility in days. A normal 30 to 45 day closing. |
| Suffolk County HOME Consortium Down Payment AssistanceSuffolk County | Up to $30,000, forgiven after ten years | First time buyers with household income at or below 80 percent of the area median, at least $3,000 of your own money in the bank, in person counseling at a HUD certified agency, buying a one family home, condo, co-op or manufactured home. | Sixty to ninety days before you shop: the counseling class first, then the application the day a round opens, then the certificate before any contract. |
| Nassau County HOME Down Payment AssistanceNassau County | Up to $50,000, with at least $5,000 of your own, forgiven after fifteen years | First time buyers with household income at or below 80 percent of the area median; the county's table ran from $86,200 for one person to $162,500 for eight, at last check. | Ninety days: get on the Housing Partnership's orientation list now, finish counseling, and be ready the morning a round opens. |
| Town of Brookhaven HOME Down Payment AssistanceTowns with their own money | Up to $50,000 | Income eligible first time buyers who can get a mortgage on their own, buying a single family home inside the Town of Brookhaven at or under the program's price limit. LIHP's 2025 guidelines set that limit at $551,000, which is 95 percent of the HUD median for the town. It resets each year. | Sixty days once a round opens: counseling, then the online application through the Housing Partnership. Do the counseling now so the certificate is in hand the day it reopens. |
| Town of Babylon HOME Down Payment AssistanceTowns with their own money | Up to $50,000 | Income eligible first time buyers purchasing inside the Town of Babylon. | Sixty days, the same road as Brookhaven. |
| Huntington, Islip and HempsteadTowns with their own money | Programs of their own; the amounts are set each year | Income eligible first time buyers inside each town, by each town's own table. | Call the town's community development office the week you start; allow sixty days. |
| Federal Home Loan Bank of New York, Homebuyer Dream ProgramNonprofit and bank money | Up to $30,000 toward the down payment, closing costs and the counseling fee, through a member bank | First time buyers at or below 80 percent of the area median through the main lane; 80 to 120 percent through HDP Plus. Counseling required. | Enroll through a member bank the week the round opens in February; counseling first. The grant is reserved before contract and paid at closing. |
| SmartMove New YorkNonprofit and bank money | As little as 1 percent down from you, up to 19 percent of the price as a second mortgage | First time buyers on Long Island who complete counseling with an approved agency such as CDCLI before applying. | Four to six weeks for counseling, then a participating lender. |
| NACA, the Neighborhood Assistance Corporation of AmericaNonprofit and bank money | No down payment, no closing costs, no mortgage insurance, a below market fixed rate | Anyone; no credit score minimum, and no income limit in the areas NACA calls priority. | Three to six months before you can make an offer. |
| Bank grants: Chase, Bank of America and the restNonprofit and bank money | Chase $5,000 or $7,500 in the census tracts it names; Bank of America up to $10,000 toward the down payment plus up to $7,500 toward closing costs in select areas | Buyers of a home inside an eligible tract, on that bank's mortgage. | Ask the bank to run the address the day you find the house; no lead time. |
| Long Island Housing Partnership, the front door, and its employer programNonprofit and bank money | Free counseling, the application desk for the county and town programs, and $3,000 to $10,000 from your employer if it is a member, matched with public funds | Anyone buying a first home on Long Island; the employer program needs an employer on the list. | Two to six weeks for the orientation webinar, the class and the one on one. Start before you tour. |
| Long Island Housing Partnership Community Land TrustNonprofit and bank money | No cash. A single family home in Nassau or Suffolk, priced for households at or under 80 percent of the area median | Households at or below 80 percent of the area median income, per LIHP's program page. | Closed at last check. Get the counseling certificate now and watch LIHP's page for the next round. |
| Community Stabilization ProgramNonprofit and bank money | Up to $30,000 toward the down payment on a foreclosed or distressed home, in the years it is funded | First time buyers inside the program's income limit, with at least $3,000 of their own money in the bank. LIHP's 2022 guidelines put the income line at 130 percent of the area median, well above the 80 percent line the county and town programs use. | No open round at last check. Call LIHP before you plan on it. If it is funded, counseling comes first, then the application, before any contract. |
State of New York
3 percent of the price toward the down payment, $1,000 to $15,000, as a loan that is forgiven after ten years.
What it is
The state's main first time buyer mortgage: a 30 year fixed rate through the State of New York Mortgage Agency, on one to four family homes, condos and co-ops. The Down Payment Assistance Loan rides on top: zero interest, no monthly payment, forgiven if you stay ten years.
Who qualifies
First time buyers (no home owned in the last three years) inside SONYMA's income and price limits for Nassau and Suffolk. The 2026 table put a one or two person household near $112,000 of income; larger households run higher. Check the table for yours.
Pros
- Real money toward the down payment, forgiven, not repaid, if you stay ten years.
- A fixed rate for 30 years from the state, with no prepayment penalty.
- Works on condos and co-ops, which most county programs do not.
Cons
- Taking the down payment loan raises the mortgage rate a little.
- Only a SONYMA participating lender can write it, so the lender list is short.
- Sell or move out inside ten years and the loan comes due.
Be ready
Pre approval in a week. SONYMA adds about two weeks of review to a normal 45 day closing, so plan on 60 days from contract to keys.
The catch
The income cap is real and the rate bump for the assistance is real. Ask the lender for both numbers side by side before you take it.
How to apply
Ask a SONYMA participating lender for the Low Interest Rate Program with DPAL. The lenders on the resources page know it.
Status
Standing program, open. Rates change monthly on SONYMA's page; the 2026 income table took effect July 6, 2026. Checked September 14, 2026.
3 percent down, and only 1 percent of it has to be your own money.
What it is
SONYMA's lowest rate mortgage, a 30 year fixed financing up to 97 percent of the price, for buyers with lower incomes. The rest of the down payment can be a gift or one of the assistance programs on this page.
Who qualifies
First time buyers under SONYMA's lower income tier for Nassau and Suffolk; the 2026 table applies from July 6, 2026.
Pros
- The lowest SONYMA rate.
- One percent of your own money is the smallest cash requirement on this page.
- Stacks with the Down Payment Assistance Loan and with county money.
Cons
- The income cap is the lowest on this page.
- A co-op or a three to four family home needs 3 percent from you, not 1.
- SONYMA lenders only.
Be ready
Same as the Low Interest Rate Program: a week for pre approval, about 60 days from contract to keys.
The catch
Many two income households on Long Island sit over the cap. Ask the lender to run your household size against the table before you plan on it.
How to apply
Ask a SONYMA participating lender for Achieving the Dream.
Status
Standing program, open. Checked September 14, 2026.
Up to $30,000 toward the down payment, closing costs and mortgage insurance, forgiven after ten years.
What it is
A bigger version of the Down Payment Assistance Loan for the lowest incomes, from a limited 2026 pool. It can also pay the mortgage insurance premium in one go, which lowers the monthly payment.
Who qualifies
First time buyers with household income at or below 60 percent of the area median, on a SONYMA mortgage, per the 2026 term sheet.
Pros
- Twice the standard assistance, and it can wipe out mortgage insurance.
- Zero interest, no monthly payment, forgiven after ten years.
Cons
- A limited pool; when it is spent, it is spent.
- The 60 percent income line leaves most working couples out.
- Same ten year stay rule.
Be ready
Ask the SONYMA lender the day you get pre approved whether the pool is still open; the money is reserved when your file is, not when you apply.
The catch
It is a pool, not a right. The term sheet is revised in June each year and the pool can close mid year.
How to apply
Through a SONYMA participating lender, ask for DPAL Plus.
Status
2026 pool open at last check; the term sheet is dated June 2026. Checked September 14, 2026.
Federal loan programs, any lender
3.5 percent down with a credit score of 580 or better; the 2026 limit in Nassau and Suffolk is $1,249,125 for a one family home.
What it is
The federal government insures the loan, so a lender takes a smaller down payment and a thinner credit file. The whole 3.5 percent can be a gift or a grant.
Who qualifies
Anyone buying a primary home, first time or not. No income cap.
Pros
- No income cap and no first time rule.
- Credit as low as 580 works.
- Sellers may pay up to 6 percent of the price toward your closing costs.
Cons
- Mortgage insurance for the life of the loan at under 10 percent down, on top of an upfront premium.
- The appraiser checks the house against FHA's condition rules; a peeling window or a missing handrail can hold a closing.
- Some sellers read an FHA offer as slower.
Be ready
Pre approval in a day or two. A normal 30 to 45 day closing.
The catch
The insurance never drops off. Many buyers refinance out of FHA once they hold 20 percent, which is a second closing.
How to apply
Any lender. Ask for the FHA lane and the conventional 3 percent lane on the same day and compare the monthly payment.
Status
Standing federal program. The limit resets each January. Checked September 14, 2026.
3 percent down; HomeReady and Home Possible want household income at or below 80 percent of the area median, Conventional 97 has no income cap for a first time buyer.
What it is
Fannie Mae and Freddie Mac loans with a small down payment. The insurance is private and drops off once you hold 20 percent, which FHA's does not.
Who qualifies
First time buyers for Conventional 97; income at or below 80 percent of the area median for HomeReady and Home Possible. HUD's June 2025 table put 80 percent for a family of four in Nassau and Suffolk at $131,900.
Pros
- Mortgage insurance ends, so the payment drops later without a refinance.
- HomeReady and Home Possible price the insurance lower for the incomes they serve.
- Every lender writes them.
Cons
- Credit needs to be stronger than FHA, usually 620 and up, and the rate rises as the score falls.
- Sellers may pay only 3 percent toward closing costs when you put down under 10.
- The 80 percent income line rules out many two income households.
Be ready
Pre approval in a day or two. A normal 30 to 45 day closing.
The catch
Three percent down on a $600,000 house is still $18,000 plus closing costs. The programs below are for the rest.
How to apply
Any lender. Say HomeReady or Home Possible if your income is under the line, Conventional 97 if not.
Status
Standing programs. The income table resets each year. Checked September 14, 2026.
No down payment and no monthly mortgage insurance; a funding fee of 2.15 percent of the loan on first use with nothing down, financed into the loan.
What it is
For veterans, active duty and some surviving spouses. The Department of Veterans Affairs guarantees the loan.
Who qualifies
Anyone with a VA Certificate of Eligibility, which the lender can pull in minutes.
Pros
- Zero down and no monthly insurance is the best deal on this page for those who qualify.
- Sellers may pay up to 4 percent toward closing costs.
- The funding fee is waived for a service connected disability.
Cons
- The funding fee is real money, 2.15 percent on first use with nothing down.
- The VA appraisal has its own condition rules, like FHA.
Be ready
Certificate of Eligibility in days. A normal 30 to 45 day closing.
The catch
A house that fails the VA appraisal's condition rules needs repairs before closing, and some sellers will not wait.
How to apply
Any VA approved lender.
Status
Standing federal program. Checked September 14, 2026.
Suffolk County
Up to $30,000, forgiven after ten years.
What it is
A zero interest deferred loan toward the down payment on a home inside the Suffolk consortium: the five East End towns, Smithtown and Huntington, minus some villages. Live there ten years and it is forgiven.
Who qualifies
First time buyers with household income at or below 80 percent of the area median, at least $3,000 of your own money in the bank, in person counseling at a HUD certified agency, buying a one family home, condo, co-op or manufactured home.
Pros
- Thirty thousand dollars that becomes a gift after ten years.
- It stacks on a SONYMA or FHA mortgage.
Cons
- Babylon, Islip and Brookhaven are not in the consortium; they run their own.
- It runs in rounds with a postmark deadline; the last round closed April 1, 2025.
- You cannot sign a contract before the county issues your purchaser certificate, and the certificate takes weeks.
Be ready
Sixty to ninety days before you shop: the counseling class first, then the application the day a round opens, then the certificate before any contract.
The catch
The round is the whole game. Miss the deadline and there is no program until the next one.
How to apply
Download the guidelines and application at SCDownpayment.com when a round is open, or call the Office of Community Development. 631 853 5705.
Status
Closed on LIHP's list. The 2025 round closed April 1, 2025. Ask the office whether a 2026 round is announced before you plan on it. Checked October 12, 2026.
Nassau County
Up to $50,000, with at least $5,000 of your own, forgiven after fifteen years.
What it is
A zero interest deferred loan toward the down payment and closing costs on a home in Nassau County, single family, condo, co-op or townhouse, run through the Long Island Housing Partnership.
Who qualifies
First time buyers with household income at or below 80 percent of the area median; the county's table ran from $86,200 for one person to $162,500 for eight, at last check.
Pros
- The largest county number on Long Island.
- Condos and co-ops count.
Cons
- Fifteen years of residency, the longest on this page; move early and HUD wants it all back.
- Rounds are short and first come first served; the last one closed March 6, 2024.
- Certificate before contract, like Suffolk.
Be ready
Ninety days: get on the Housing Partnership's orientation list now, finish counseling, and be ready the morning a round opens.
The catch
Closed at last check. The county page still names the 2024 deadline.
How to apply
Through the Long Island Housing Partnership when a round opens. 631 435 4710.
Status
Closed on LIHP's list. Confirm with the Housing Partnership. Checked October 12, 2026.
Towns with their own money
Up to $50,000.
What it is
A HUD funded down payment and closing cost loan for a first time buyer purchasing inside the Town of Brookhaven, run through the Long Island Housing Partnership.
Who qualifies
Income eligible first time buyers who can get a mortgage on their own, buying a single family home inside the Town of Brookhaven at or under the program's price limit. LIHP's 2025 guidelines set that limit at $551,000, which is 95 percent of the HUD median for the town. It resets each year.
Pros
- Fifty thousand dollars toward the down payment or closing costs when a round is open.
- Fifty thousand dollars in the town with the most houses under $600,000.
Cons
- Ten years of residency or HUD wants it all back.
- First come first served until the pool empties.
- A price limit. The 2025 guidelines capped the house at $551,000, and if the appraisal comes in under your price the money does not come.
- At least 3 percent of the price has to be your own money, per the 2025 guidelines.
Be ready
Sixty days once a round opens: counseling, then the online application through the Housing Partnership. Do the counseling now so the certificate is in hand the day it reopens.
The catch
It opens and closes with the funding. When it opens, the day you apply matters.
How to apply
Apply online through the Long Island Housing Partnership; ask for the Brookhaven Town HOME program. There is a $75 application fee. 631 435 4710.
Status
Closed. LIHP's page says the application period is now closed. Checked October 12, 2026.
Up to $50,000.
What it is
Babylon runs its own HOME program outside the Suffolk consortium, through the Long Island Housing Partnership.
Who qualifies
Income eligible first time buyers purchasing inside the Town of Babylon.
Pros
- The same fifty thousand dollar shape as Brookhaven.
Cons
- Ten years of residency.
- Funding comes and goes with the town's HUD allocation.
Be ready
Sixty days, the same road as Brookhaven.
The catch
Ask whether it is funded this year before you count on it.
How to apply
Through the Long Island Housing Partnership. 631 435 4710.
Status
Closed on LIHP's list. Funding varies by year. Checked October 12, 2026.
Programs of their own; the amounts are set each year.
What it is
Huntington keeps a down payment assistance page. Islip's Community Development Agency runs affordable home lotteries and rent with option to buy, not a cash grant. The Town of Hempstead offers first time buyer help toward down payment or closing costs.
Who qualifies
Income eligible first time buyers inside each town, by each town's own table.
Pros
- Town money is the least known, so the lines are shorter.
Cons
- Each town publishes its amount and its window on its own schedule.
- Islip's programs are for specific homes, not the house you found.
Be ready
Call the town's community development office the week you start; allow sixty days.
The catch
No town number is printed here because none was stable enough to print. The links are the offices.
How to apply
Huntington: the town's down payment assistance page. Islip: islipcda.org. Hempstead: the town's community development agency.
Status
Ask each office. Checked September 14, 2026.
Nonprofit and bank money
Up to $30,000 toward the down payment, closing costs and the counseling fee, through a member bank.
What it is
A grant from the Federal Home Loan Bank, delivered by the banks and credit unions that belong to it. The 2026 round opened February 9, 2026 with about $31.7 million and 110 members. A second lane, HDP Plus, serves households between 80 and 120 percent of the area median.
Who qualifies
First time buyers at or below 80 percent of the area median through the main lane; 80 to 120 percent through HDP Plus. Counseling required.
Pros
- A grant, not a loan; the largest bank delivered number on this page.
- HDP Plus reaches two income households the county programs leave out.
Cons
- Only through a member bank, and each member takes a set number of buyers.
- First come, first served from the February opening; by late summer most members are done.
- A five year stay rule with repayment on a pro rated schedule.
Be ready
Enroll through a member bank the week the round opens in February; counseling first. The grant is reserved before contract and paid at closing.
The catch
The list of members changes every year and each one has a small allotment.
How to apply
Ask your lender whether it is a Federal Home Loan Bank member with Homebuyer Dream funds this year; the bank's list is on the program site.
Status
2026 round opened February 9, 2026; members run out through the year. Checked September 14, 2026.
As little as 1 percent down from you, up to 19 percent of the price as a second mortgage.
What it is
A partnership between the Community Development Corporation of Long Island and the Housing Development Fund. The assistance is a 20 year fixed rate second mortgage that covers most of the down payment, which also lets you skip private mortgage insurance.
Who qualifies
First time buyers on Long Island who complete counseling with an approved agency such as CDCLI before applying.
Pros
- One percent of your own money.
- No mortgage insurance.
Cons
- It is a real second mortgage with its own payment, not a grant.
- Only participating lenders write the first mortgage, and the list moves.
Be ready
Four to six weeks for counseling, then a participating lender.
The catch
Two payments every month. Run the total against a SONYMA loan with assistance before you choose.
How to apply
Start with CDCLI's homebuyer counseling, then apply through a participating lender they name.
Status
Active at last check. Checked September 14, 2026.
No down payment, no closing costs, no mortgage insurance, a below market fixed rate.
What it is
A national nonprofit with its own mortgage through partner banks. Long Island is inside its New York territory. The price is a long counseling and qualification process.
Who qualifies
Anyone; no credit score minimum, and no income limit in the areas NACA calls priority.
Pros
- The lowest cash to close of anything on this page, often zero.
- No mortgage insurance.
Cons
- Qualification runs three to six months of workshops, counseling and paperwork before you may shop.
- The house must pass NACA's own inspection and the seller must accept NACA's timeline.
- Sellers and their agents see it rarely and some walk.
Be ready
Three to six months before you can make an offer.
The catch
Patience is the down payment.
How to apply
Start at naca.com with the workshop.
Status
Standing program. Checked September 14, 2026.
Chase $5,000 or $7,500 in the census tracts it names; Bank of America up to $10,000 toward the down payment plus up to $7,500 toward closing costs in select areas.
What it is
Big banks put grants on their own loans in neighborhoods they choose by census tract. The address decides, not you. Chase drops the income limit on its 3 percent loan where its grant applies.
Who qualifies
Buyers of a home inside an eligible tract, on that bank's mortgage.
Pros
- Free money on a normal loan, no rounds, no counseling.
- Stacks with FHA or conventional.
Cons
- Only the addresses on the bank's map, and the map is not public.
- You must take that bank's loan and its rate.
Be ready
Ask the bank to run the address the day you find the house; no lead time.
The catch
The grant can hide a worse rate. Compare the whole monthly payment against another lender.
How to apply
Give the address to a Chase or Bank of America loan officer and ask whether it qualifies. Ask every lender you talk to the same question.
Status
Standing bank programs; maps and amounts change without notice. Checked September 14, 2026.
Free counseling, the application desk for the county and town programs, and $3,000 to $10,000 from your employer if it is a member, matched with public funds.
What it is
A HUD certified nonprofit in Hauppauge. Most of the programs above require its counseling or take their applications through it. Its Employer Assisted Housing Program adds an employer's own contribution when the employer has joined; more than 120 Long Island employers have.
Who qualifies
Anyone buying a first home on Long Island; the employer program needs an employer on the list.
Pros
- One counseling certificate unlocks most of this page.
- An employer contribution nobody thinks to ask for.
Cons
- Counseling takes weeks, not days.
- The employer must already be a member; ask human resources.
Be ready
Two to six weeks for the orientation webinar, the class and the one on one. Start before you tour.
The catch
Every county round on this page assumes you already have the certificate.
How to apply
Sign up for the free orientation at lihp.org or call. 180 Oser Avenue, Hauppauge. 631 435 4710.
Status
Open year round. Checked September 14, 2026.
No cash. A single family home in Nassau or Suffolk, priced for households at or under 80 percent of the area median.
What it is
The Housing Partnership offers single family homes through its land trust program: one or two stories, three or four bedrooms, one and a half or two baths. You apply for a home in the program, not for money toward a house on the open market.
Who qualifies
Households at or below 80 percent of the area median income, per LIHP's program page.
Pros
- A whole house at a price set for the income line.
- Three or four bedrooms, which the lower priced condo and co-op lanes rarely have.
Cons
- You choose from the homes in the program, not from the market.
- The application period is closed at last check.
- A land trust home usually carries a resale rule that keeps the price low for the next buyer, and LIHP's page does not print the terms.
Be ready
Closed at last check. Get the counseling certificate now and watch LIHP's page for the next round.
The catch
Ask what happens when you sell, before you apply. With a land trust that answer is part of the deal.
How to apply
Through the Long Island Housing Partnership when the application period reopens. 631 435 4710.
Status
Closed. LIHP's page says the application period is now closed. Checked October 12, 2026.
Up to $30,000 toward the down payment on a foreclosed or distressed home, in the years it is funded.
What it is
A New York State funded program run by the Long Island Housing Partnership. It helps a first time buyer purchase a foreclosed, blighted or distressed property in Nassau or Suffolk, so the house gets an owner instead of sitting empty.
Who qualifies
First time buyers inside the program's income limit, with at least $3,000 of their own money in the bank. LIHP's 2022 guidelines put the income line at 130 percent of the area median, well above the 80 percent line the county and town programs use.
Pros
- Up to $30,000.
- An income line that reached two income households the county programs leave out.
Cons
- Only a foreclosed, blighted or distressed property qualifies, and those houses need work.
- The program is not on LIHP's current list; the last guidelines found are dated 2022.
Be ready
No open round at last check. Call LIHP before you plan on it. If it is funded, counseling comes first, then the application, before any contract.
The catch
The house is the hard part. A foreclosure sells as is, and this money goes to the down payment, not the roof. How a foreclosure sale works.
How to apply
Through the Long Island Housing Partnership. 631 435 4710.
Status
No open round found. LIHP's current list does not show it. Checked October 3, 2026.
If you are the seller, and the offer carries one of these
Most Long Island first time buyers arrive with a program. Here is what each one means for you, so the offer reads as what it is and not as a risk.
How they stack
A SONYMA, FHA or conventional mortgage is the first loan. County, town, Homebuyer Dream and bank money sits on top of it as a grant, a second lien or a deferred loan. SONYMA and FHA allow that. So picture a Suffolk buyer inside the income limits, in a year when the round is open: 1 percent of their own money on an Achieving the Dream mortgage, the county's $30,000 as a deferred loan behind it, and the Homebuyer Dream grant through the bank on top of that.
Two things that do not stack: a county deferred loan and the SmartMove second mortgage on the same purchase, because both want the second position; and any program with a house you already signed a contract for, because every one of them requires the certificate or the reservation before the contract.
The plain math. On a $550,000 house, 3 percent down is $16,500. With 1 percent from you that is $5,500 of your own money at the down payment, before closing costs and before the inspection package. The affordability tool runs the monthly side, and it carries the FHA lane.
This page lists programs and what they published, with the date each was checked. It is not lending advice and it is not an application. Income limits are set by HUD and SONYMA each year and change; the program's own page and your lender decide. Muds is not a lender and earns nothing from any program or bank named here.
Sources
SONYMA programs, income and price tables and the DPAL Plus 2026 term sheet. Suffolk County Down Payment Assistance Program. Nassau County first time home buyers. Long Island Housing Partnership down payment programs. LIHP, Town of Brookhaven program page. LIHP, Brookhaven 2025 program guidelines. LIHP, Community Land Trust. LIHP, Community Stabilization Program 2022 guidelines. Federal Home Loan Bank of New York, Homebuyer Dream Program. HUD, FHA loans. VA home loans. HUD income limits. Read September 14, 2026; the Long Island Housing Partnership pages read October 3, 2026.
Call or text (631) 528-5786 The full buyer guide What can I afford
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